CapitalSetu

78 out of 100 profitable SMEs faced a cash crunch in the last 12 months.

Re-read that. Profitable SMEs.

Not businesses that were losing money. Not businesses with bad products or poor sales. Businesses that were making money — on paper — but couldn't access it when they needed it.

Here's why profit and cash are two completely different things:

➤ Profit = Revenue - Expenses (on your P&L)
➤ Cash = What's actually in your bank account today

You can sell ₹50 lakh worth of goods this month. Invoice raised. GST filed. Delivery done. But if your buyer pays in 60 days — your P&L shows profit. Your bank account shows nothing.

The danger zone: You still have to pay your staff. Your rent. Your raw material supplier. Your EMIs. Today.

This is why lakhs of honest, hardworking business owners end up borrowing at 24–36% interest even when their business is doing well — because they're using expensive money to fund someone else's free credit.

Profit is a destination. Cash flow is the road. And right now, too many SME owners are stranded on that road.

"Save this. Share with a founder friend who needs to hear the difference between profit and cash."